GST advisory on reporting of inter state supplies to un-registered dealers
From September 2024, the taxpayers shall report all inter state supply invoices to unregistered dealers exceeding Rs. 1 Lakh in their GSTR 1 and GSTR 5.
The Goods and Services Tax (GST) came into effect in July 2017. Since then, the GST department has regularly released updates, notifications, and clarifications to help businesses comply with the tax regulations.
On 10th July 2024, government has issued a Notification No. 12/2024 – Central Tax. Through this Notification, the government lowered the threshold limit for reporting invoice-specific details of inter-state taxable supplies to unregistered dealers from 2.5 lakh rupees to 1 lakh rupees while filing their GSTR 1 and GSTR 5. This change has come into effect from 1st September 2024 for all GST taxpayers.
On September 3, 2024, the GSTN portal has issued an advisory in relation to the above mentioned notification. This advisory requires taxpayers to provide details of all inter state supply invoices exceeding one lakh rupees for unregistered dealers in the same table that is presently available for the invoices exceeding Rs. 2.5 Lakhs. Thus, if a registered taxpayer issues an inter state supply invoice to an unregistered dealer exceeding Rs.1 Lakh amount, they must include the invoice details in Table 5(B2C Large) of Form GSTR-1 and Table 6 of GSTR-5.
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